The Philippines Continues As a Strong and Steady Contact Center Hub: IDC
05 Nov 2013
Manila, 5 November 2013 – The Philippines continues as a strong and steady contact center hub in the region with US$10.1M factory revenue recorded for 1H13, a rise of 10% over the same period in 2012.
According to IDC's 1H13 Asia Pacific Collaboration and Video tracker, contact center market ranked the second largest in the unified communication and collaboration (UC&C) space, dominating 28.8% of total revenues in 1H13. This is followed closely behind enterprise telephony
(41.0%) and has spearheaded collaboration apps and videoconferencing solutions which recorded 22.7% and 7.6% respectively.
In a period when the country has undergone its 31st Senate elections in May 2013, the market has not undergone any slowdown in investments. Conversely, it has maximized its potential to be the hotbed for many UC&C vendors, driven mainly by several factors behind the impressive growth rates of the Philippines business process outsourcing (BPO) sectors.
These include its strong adaptability of human resources, well-educated English speaking workforce, increase availability of commercial hubs (next wave cities), coherent telecommunications infrastructure, deregulation of the telecommunications market as well as tax exemptions incentives.
As the market has gradually moved to higher-value knowledge process outsourcing services (KPO), contact center solutions will continue to gain traction in the country. Correspondingly, it has accelerated the uptake of enterprise telephony; videoconferencing solutions and collaboration apps in a multichannel space, given that BPO/ service vertical is now the largest UC&C's revenue contributor which recorded approximately US$9.1M in 1H13.
"The Philippines economy is on a higher growth trajectory and will continue to rise in popularity as a BPO and higher-value services hub. Vendors that have ventured into the contact center space like Avaya, Aspect Software, Altitude Software and Cisco have experienced an astounding growth during 1H13," says Tan Hwee Xian, Market Analyst at IDC's Asia/Pacific Communications Group.
"Other UC&C products like enterprise telephony, videoconferencing solutions and collaboration apps have also inched up with a double digit growth rate half-over-half which indicates that Philippines remains a sweet spot for IT investors, effectively countering the effects of a global and regional's economy slowdown."
FIGURE 1: Philippines Unified Communications & Collaboration (UC&C) Revenue, 1H13
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According to IDC's Asia/Pacific Collaborations and Video 2013-2017 Forecast, the Philippines' UC&C is estimated to hit US$110.3M in vendor revenues by 2017. This marks a 13% Compound Annual Growth Rate (CAGR).
Nevertheless, as cloud and "freemium" app services gradually make inroads into the market, such impact will have greater percussion towards the Philippines' UC market during the forecast period, including contact center solutions. For instance, Philippine Long Distance Telephone Co (PLDT), through its corporate enterprise arm PLDT ALPHA Enterprise, has recently launched the country's first cloud-based contact center service targeting BPO and banking sectors.
With widespread availability of UCaaS (Unified Communications as a Service) solutions in the marketplace, IDC is expecting more OpEx-friendly UCaaS offerings to appear in the Philippines market throughout various industries.
For further information on the findings contained in this report, please contact Yusnee Mohd Yusof at +603-2177-9259 or firstname.lastname@example.org.
IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 49 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.
ContactFor more information, contact:
Tan Hwee Xian